You need money to make money.
Therein lies the problem for many small business owners and entrepreneurs who are trying to launch their big dream.
To start a business or to move an existing business forward, the biggest hurdle is often finding the needed money. This is where a relations
hip with a banker specializing in commercial loans and Small Business Administration loans is crucial.
Whether in a startup or an expansion, making time to meet with a loan specialist can help an entrepreneur navigate the options for a business loan. Of the many funding options, a banker’s expertise will many times offer great insight for better borrowing decisions.
And the advice is free.
Greg Starup, vice president and manager for the SBA Lending Department at First Heritage Bank in Snohomish, said that unbiased advice about a business plan is always helpful.
“It’s an extra set of eyes to review your plans and receive valuable feedback, even if you don’t take out a loan,” Starup said.
Jeff Mitchell agreed. He’s a senior vice president and commercial lending manager at Banner Bank in Everett and has been in commercial lending for more than 30 years.
Mitchell echoed the value of developing a relationship with customers; it’s good for the bank and it’s good for the customer. In fact, Mitchell noted that the smaller banks often have an advantage for the small business owner in that these banks are very close to the customer.
“There are many moving parts to a credit decision for a small business, so it becomes critical that the loan officer has confidence in the suitability of a business loan,” Mitchell said.
He offered several reasons to be connected with a banker:
• Local lending decisions are typically made through a local office.
• You can receive a quicker decision than if you were a new account.
• Your banker can provide free and good advice about potential obstacles or challenges and may keep you from making a disastrous decision.
• You can learn about products that fit your needs, whether it’s an SBA loan, a line of credit or a traditional commercial loan.
“It’s important to me that we establish the right loan for the right purpose,” Mitchell added.
Many entrepreneurs like to shop around for the best terms, rates and service support. That makes sense.
But an ongoing relationship with a banker offers more. It’s no different than working with an insurance agent to periodically review risk exposure and changes in the business that may require a policy adjustment.
Ultimately, a banker needs to understand your business and the cycles that are prevalent in your industry.
Starup recently visited Everett Community College and presented a workshop on the SBA loan program to business students.
They learned the advantages that the SBA program offers as a popular alternative for many small-business owners, given the benefit of federal loan guarantees.
There were also other helpful side conversations about several strategies for business startups or expansions.
Pat Sisneros is the vice president of college aervices at Everett Community College. Juergen Kneifel is a senior associate faculty in the EvCC Business and Workforce Education Department. Please send your comments to entrepreneurship@everettcc.edu.
Small business financing
First Heritage Bank’s Greg Starup will speak about Small Business Administration loans at 7 p.m. April 28 at Everett Community College’s Whitehorse Hall, Room 105.
The free event is open to the community. To reserve a spot, email entrepreneurship@everettcc.edu.
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